Sonangol EP and ExxonMobil Corp. (NYSE: XOM) on Dec. 14 signed a memorandum of understanding defining the intention of signing the risks with service contracts , for Blocks 30, 44 and 45 of the Namibe Basin.
Carlos Saturnino and Andre Kostelnik, chairman of the board of directors of Sonangol EP and general manager of ExxonMobil in Angola, respectively, were the signatories to the memorandum, which represents the reinforcement of the cooperation agreements between the two companies.
In his brief speech, Carlos Saturnino emphasized that the memorandum is part of the Angolan government’s guidelines on the attraction of foreign investment, and marks the beginning of a new era and the relaunch of the oil exploration strategy in Angola, which involves activities of prospecting and research.
The CEO of ExxonMobil, a company that has been operating in Angola for more than 25 years, said that “2018 was marked by many promises and changes that are welcome.” Andre Kostelnik also said that the North American company is very enthusiastic about strengthening cooperation with Sonangol and is interested in continuing to work in Angola and thus contribute to the prosperity of Angolans.
Sonangol executive directors Baltazar Miguel, Alice Soups and Rosário Isaac attended the ceremony, as well as directors and some invited technicians, also from the national oil company.
Activist investor Elliott Management offered to buy oil and gas producer QEP Resources in an all-cash deal valued at $2.07 billion, saying that the company is "deeply undervalued."
Overall, 2018 was the Year of Consolidation as several E&Ps agreed to merge throughout the U.S., including inside and outside the prolific Permian Basin.
Expect plenty of capital, plenty of volatility, plenty of shifts in investor strategies—and plenty of unfolding stories to track as the new year progresses.